Project Shakti : Case Study

1195 words 5 pages
Unilever in India: Hindustan Lever’s Project Shakti-Marketing FMCG to the rural Consumer
Case Analysis Notes

Section E, Group 7

Submitted By
Anshu Khanna PGP/17/257
Diksha Singh PGP/17/267
Mohd. Shajeer PGP/17/277
Priya Chandak PGP/17/287
Shiji Thilak PGP/17/297

Q1)How is HUL placed in the Indian Consumer market?
Hindustan Unilever Limited is the biggest player in the market share of FMCG sector of the country. The FMCG sector of the country is the fourth largest sector of the economy with a size 13.1 billion USD.
It is being positioned in the market as brand adding “Vitality to Life”. It sought for market leadership in a wide range of product categories and also across a broad spectrum of price points in each category.
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After being trained by the company, the Shakti entrepreneur then sold those goods directly to consumers and retailers in the village.
Q4)If Shakti cannot become profitable, should HUL continue the program? Why?
If Shakti cannot become profitable, HUL should continue the program because of the following reasons: 1. Growing Rural Market

* The rural market is makes up 72.74% of the overall Indian population. The untappedpotential of this market can be made viable only with deeper penetration. The marketing techniques which suit to the urban population of the country cannot suffice for this new expanding market due to social causes like bad connectivity, lesser means of media communication and illiteracy. Project Shakti has been developed in such a way that it can market the product beyond these restrictions by one-to-one endorsement. Due to the social mind-set in most of the rural areas, it is easier to influence them by local people whom they find more credible.

2. Stagnant Urban Market

* The urban market is slowing on growth since the previous three years. It can be expected that it will reach a saturation point sometime in the future. Also there will be more competition in the market reducing the growth trajectory. There is a high need for creating new markets and leverage the first mover advantage.

3. Deeper Social Impact

* The Project Shakti is popular for the deeper social Impact it is creating in the minds of the people. With